Yesterday Cedar Fair, L.P. announced that it has entered into an agreement to be acquired by an affiliate of Apollo Global Management, a leading global alternative asset manager.
Under the terms of the agreement, Cedar Fair unitholders would receive $11.50 in cash for each limited partnership unit they hold. The transaction is valued at approximately $2.4 billion, including the refinancing of the Company’s outstanding debt. The deal would also make the publicly-traded company private.
Cedar Fair’s chairman, president and chief executive officer, Dick Kinzel, said, “We have considered a wide range of strategic alternatives over the past several years. After considering these strategic alternatives, we have concluded that the transaction with Apollo is in the best interest of our unitholders.”
“This transaction allows Cedar Fair unitholders to realize significant value from their investment in our Company over recent trading levels,” added lead director, Michael Kwiatkowski. “Apollo has a strong track record of growing businesses, and its desire to add Cedar Fair to its portfolio serves as a testament to our solid business model and the talent of our people.”
Aaron Stone, a Senior Partner at Apollo, said, “We are extremely pleased to be acquiring this premier amusement park operator. We look forward to partnering with Cedar Fair’s management team and employees to build on the many strengths of the Company. We are firmly committed to Cedar Fair’s continued growth as an industry leading amusement park operator.”
Apollo Global Management is a leading global alternative asset manager with offices in New York, Los Angeles, London, Singapore, Frankfort and Mumbai. Apollo had assets under management of over $51 billion as of September 30, 2009, in private equity, credit-oriented capital markets and real estate invested across a core group of nine industries where Apollo has considerable knowledge and resources.
For more information on the merger visit Cedar Fair.
Tags: acquisition, Apollo global management, Canada's Wonderland, carowinds, Cedar Fair, cedar point, Equity Firm, great america, Kings Dominion, Kings Island, Knott's Berry Farm, michigans adventure
Here's my impersonation of all of the coaster enthusiasts......
YouTube - darth vader says NOOooOOOoooOOOooo
Or this...
YouTube - The Simpsons - Dohs
This is Six Flags new ad campaign after the sale...
YouTube - RickRoll'D
I am very curious to see the outcome of this takeover. It would get rid of most of the debt that Cedar Fair has acquired and I would like to see food prices lowered in the parks so that their per cap spending would increase.
Other then that, I think top management in Cedar Fair needs shaken up a bit. Put in some fresh and young faces that are ready to take on this economy with the parks and shake things up a bit.
^ I totally agree on the food prices. It's crazy that Carowinds has higher prices on food than about every park I've been to in the Southeast.
Yeah, Cedar Fair could use some younger employees. The lowered food prices is a good idea. It will be interesting to see what happens to the park. I think the new management will be a real boost to the debt problem the park is having.
It's about time all enthusiasts are on the same level. Six Flags - Cedar Fair: We're going to have to latch up and just support the parks in general. The time to brag is long gone. We are all humbled.
^Amen, Leo! Six Flags and Cedar Fair are in the same boat.
Leo is absolutely right on about this one.....this isn't 2001 anymore. Forget who has the tallest, fastest, most innovative, most numbers, or most over/under-rated. We can't worry about that any longer. Just enjoy what we already have and hope things eventually get better.
Cedar Fair and Six Flags maybe in debt, but its not the same as far as why. Six Flags is in debt due to the parks being crapy, the ceo whos a money hungry shark and is getting raises when the park cant afford it, they cant keep rides up to maintance and they are always being sued for some reason. Cedar Fair's debt is mostly from the buying of Paramount Parks. And spending millions trying to fix Son Of Beast which is a lost cause. Lol. But Cedar Fair knows how to bring in people. They did some big things in the last few years that Six Flags couldnt think of. Cedar Point its self for the first time i beleave did 2 concerts in 09. Plus brought in Jeff Gordon. Kings Island in the last few years brought in 3 members of the Brady Bunch, had a record breaking jump by a famous stunt man's son, had a tight rope walk, bike stunts, and a few other things. Plus, Cedar Fair is building a bunch of new rides for the 2010 season. People say that spending is down. The way Kings Island and Cedar Point has been packed this year tells different. I would rather have older people at the helm for a themepark then younger ones. If it wasnt for Cedar Fair's Dick K., Cedar Fair may of not of been. He started the coaster war with Magnum. And im sure when he leaves in a few years, his last coaster could be bigger then Kingda Ka. Six Flags has lost alot of parks due to not being able to keep money coming in. Plus they got removed from the stock market. I think that Six Flags needs to get rid of its ceo.
Yeah, I don't think Cedar Fair is struggling like Six Flags, but in today's uncertain financial times, to get that much debt off your books is good any way you look at it.
And I totally agree we need to support our local parks. If you really look at a season pass, and what you get at most parks the size of your average Cedar Fair or Six Flags park, you're really getting a steal. I complain about the food prices, but overall it's still a good value if you go several times a year.
Apollo Management is an equity firm. With the debt Cedar Fair has from the Paramount purchase and the state of the economy, it was really only a matter of time before something like this happened. Lots of businesses do this.
Cedar Fair's not going away, and I seriously doubt much will change except maybe a bit of a shake-up with some higher-ups. Money will probably be shifted around, and a few practices might end.
Equity firms pick up companies they feel can still profit but are struggling a little. Apollo's a private firm, so of course its acquisition of Cedar Fair would privatize the company.
As far as things the parks are doing, I assume you haven't heard of Six Flags' Starburst Summer Concert Series? They had a concert every Thursday night at a bunch of their parks for 3 months. They did it this year, and I believe they did it last year as well.
Six Flags after Premier's take over was forced the hand to sell the parks that were barely deserving of the Six Flags moniker, only getting it for its regional dominance. Darien Lake and Elitch Gardens were just not the size of the pre Premier core parks, the big parks that are mostly still around.
Six Flags did have the Mars sponsered Starburst Concert Series the last two seasons. I don't really have a problem with the current CEO Mark Shapiro.
I wonder if this means the resurrection of Mr. Hyde's Nasty Fall. Many parks could use this Intamin creation.
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I wonder if this means the resurrection of Mr. Hyde's Nasty Fall. Many parks could use this Intamin creation. This is my philosophy when it comes to this:
YouTube - SondraPrill_PumpUpTheJam.mov
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Six Flags use to have 2 parks in Ohio. They sold both of them. Geauga Lake was more of getting rid of a debt load. Wyndot Lake was more of selling it cause they didnt want it anymore. And they didnt keep it up at all. The new owners of Wyndot Lake have made it into a better park. Better waterslides and new rides. Cedar Fair did try with Geauga Lake. Im still hearing that Cedar Fair is wanting to sell 2 of its parks. It maybe the same ones they were trying to sell a few years ago.
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Yes, and Mr. Hyde's was given to Cedar Point as parts for Demon Drop. Geauga Lake has not been sold off yet, but it is for sale just as Worlds of Fun and ValleyFair! are. Not a single bid has been put on either park.
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